• 40 mins Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 1 hour VW Fails To Secure Critical Commodity For EVs
  • 2 hours Enbridge Pipeline Expansion Finally Approved
  • 3 hours Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 4 hours OPEC Oil Deal Compliance Falls To 86%
  • 20 hours U.S. Oil Production To Increase in November As Rig Count Falls
  • 22 hours Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 24 hours Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 1 day EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 1 day Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 1 day Aramco Says No Plans To Shelve IPO
  • 4 days Trump Passes Iran Nuclear Deal Back to Congress
  • 4 days Texas Shutters More Coal-Fired Plants
  • 4 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 4 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 4 days Chevron Quits Australian Deepwater Oil Exploration
  • 4 days Europe Braces For End Of Iran Nuclear Deal
  • 5 days Renewable Energy Startup Powering Native American Protest Camp
  • 5 days Husky Energy Set To Restart Pipeline
  • 5 days Russia, Morocco Sign String Of Energy And Military Deals
  • 5 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 5 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 5 days India Needs Help To Boost Oil Production
  • 5 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 5 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 5 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 5 days District Judge Rules Dakota Access Can Continue Operating
  • 6 days Surprise Oil Inventory Build Shocks Markets
  • 6 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 6 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 6 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 6 days Oil M&A Deals Set To Rise
  • 6 days South Sudan Tightens Oil Industry Security
  • 7 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
  • 7 days Turkmenistan To Spend $93-Billion On Oil And Gas Sector
  • 7 days Indian Hydrocarbon Projects Get $300 Billion Boost Over 10 Years
  • 7 days Record U.S. Crude Exports Squeeze North Sea Oil
  • 7 days Iraq Aims To Reopen Kirkuk-Turkey Oil Pipeline Bypassing Kurdistan
  • 7 days Supply Crunch To Lead To Oil Price Spike By 2020s, Expert Says
  • 7 days Saudi Arabia Ups November Oil Exports To 7-Million Bpd
Is The Aramco IPO On The Brink Of Collapse?

Is The Aramco IPO On The Brink Of Collapse?

Conflicting news suggests that Saudi…

Tesla Execs Bail As Cash Flow Hits Record Lows

Tesla Execs Bail As Cash Flow Hits Record Lows

Amid a rough second quarter…

Saudi Arabia Keeps Asian Oil Export Volumes Unchanged

Saudi Oil

Saudi Arabia will export full volumes of crude oil to at least three Asian clients next month, sources from the company told Reuters. The move suggests that the Kingdom is determined to maintain its market share in the fastest-growing market for energy in the world, especially when the news is seen against the backdrop of an earlier report that Aramco is lowering the prices for May exports to Asia.

Aramco’s export prices under long-term contracts – its preferred way of operating abroad – are based on the monthly average of oil prices in Dubai and Oman, adjusting for each grade. For May, it has raised the discount for the Arab Light benchmark to $0.45 a barrel, from $0.15 a barrel for this month’s shipments. The size of the discount is substantial enough to reinforce the belief that Saudi Arabia will do whatever it takes to keep the Asian market, and possibly even expand its share of it, seeing as everyone wants to export crude to Asia.

Meanwhile, the Kingdom has made an announcement that will keep oil prices higher for longer: Riyadh will back a production cut extension into the second half of the year. The move, which has already won the support of some OPEC members such as Kuwait and Angola, became necessary as prices failed to live up to OPEC’s expectations, falling back to $50 a barrel and below after briefly hovering around $56 (Brent) and $54 (WTI).

Related: Former Russian Energy Minister: U.S. Should Join OPEC Output Cuts

Now, geopolitical tensions in Syria have pushed Brent back to $56 a barrel and WTI to $53, but from OPEC’s perspective, geopolitical tensions are probably insufficient to ensure sustained price improvement.

With Saudi Arabia’s support, the extension is more likely than not to be effected. The question remains, however, whether it will push prices up to the coveted $60 a barrel, with U.S. shale producers unlikely to start cutting their output with prices rising.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News